Troubled property developer Nakheel Tuesday said it will make a $10.3 million distribution payment on an Islamic bond, or sukuk, that matures next year.
The payment is scheduled for Jan. 19 for the $750 million trust certificates due in 2011, Nakheel said in a statement on the Nasdaq Dubai Web site, without giving further details.
Nakheel's parent company Dubai World is this week expected to make a formal standstill request to creditors for $22 billion in debt while it devises a restructuring plan.
Dubai sent shockwaves through global markets in November when it requested a six-month freeze on debt repayments linked to Dubai World and its property units Nakheel and Limitless.
In December, Abu Dhabi stepped in with $10 billion in financing, of which $4.1 billion were used to repay Nakheel's sukuk that matured in December.
The remainder of the funds will be used to meet Dubai World's financing needs until the end of April.
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